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How to Make Good Decisions | Shane Parrish

Oct 9, 2023 1h 8m 23 insights
<p><em>New episodes come out every Monday, Wednesday, and Friday for free, with 1-week early access for Wondery+ subscribers.</em></p> <p><em>---</em></p> <p>Here's what might be preventing you from making better decisions and how to know what's even worth wanting.</p> <p><br /></p> <p>Shane Parrish is the entrepreneur and wisdom seeker behind <a href="https://fs.blog/" rel="noopener noreferrer" target="_blank">Farnam Street</a> and the host of <a href="https://fs.blog/knowledge-project-podcast/" rel="noopener noreferrer" target="_blank">The Knowledge Project Podcast</a>. He is the author of theĀ <em>New York TimesĀ </em>bestseller <a href="https://fs.blog/clear/" rel="noopener noreferrer" target="_blank"><em>Clear Thinking: Turning Ordinary Moments into Extraordinary Results</em></a><em>.</em></p> <p><br /></p> <p><strong>In this episode we talk about:</strong></p> <p><br /></p> <ul> <li>How to position yourself to make better decisions</li> <li>Shane's decision making process</li> <li>The difference between decisions and choices</li> </ul> <p><br /></p> <p><strong>Full Shownotes:</strong><a href="https://www.tenpercent.com/podcast-episode/" rel="noopener noreferrer" target="_blank">https://www.</a><a href="http://tenpercent.com/tph/podcast-episode/shane-parrish" rel="noopener noreferrer" target="_blank">tenpercent.com/tph/podcast-episode/shane-parrish</a></p>
Actionable Insights

1. Define Your Life’s Scoreboard

Consciously decide what truly matters to you and pursue those goals, rather than adopting external measures of success. This prevents achieving goals that ultimately prove unfulfilling, as seen in examples like Ebenezer Scrooge.

2. Create Automatic Rules for Success

Develop individual, non-negotiable “automatic rules” for desired behaviors, like working out daily or setting meeting boundaries. These rules create a new default, circumventing willpower battles and making desired actions automatic.

3. Position for “Easy Mode” Decisions

Proactively manage factors like sleep, nutrition, and preparation to optimize your state for clear thinking. This puts you on “easy mode” to manage emotional and ego-driven defaults, making better decisions effortless.

4. Practice Conscious Pausing

Cultivate the ability to pause between a stimulus and your response, allowing time to think, reason, and choose a different path than an instinctive reaction. This enables you to assess the situation and avoid impulsive, unhelpful actions.

5. Shift Ego from Right to Outcome

Consciously change your ego’s focus from needing to be “right” to prioritizing the best possible outcome in any situation. This shift helps overcome blind spots and improves collaboration by valuing the most effective solution.

6. Conduct Quarterly Input Audits

Schedule a quarterly two-hour meeting with yourself to review your social circles and information consumption (online/offline). This practice ensures you’re consciously curating positive, smart influences and avoiding negative inputs.

7. Utilize a Personal Board of Directors

Enlist a “personal board of directors” of heroes or role models who embody desired traits or mindsets. Mentally consult them (e.g., “What would X do?”) to gain diverse perspectives and reduce blind spots when facing problems.

8. Differentiate Decision Types (One-Way/Two-Way)

Categorize decisions as “one-way doors” (hard to reverse) or “two-way doors” (easy to reverse) and apply different processes. Make two-way decisions quickly, and approach one-way decisions slowly and methodically.

9. Design Decision Processes Proactively

Design your decision-making processes (e.g., for one-way/two-way doors) before a decision arises. This avoids relying on willpower or memory in the moment, ensuring a consistent and effective approach.

10. Employ the ASAP/ALAP Decision Strategy

For low-stakes, easily reversible decisions, make them “As Soon As Possible” (ASAP). For high-stakes, irreversible decisions, wait “As Late As Possible” (ALAP) to gather maximum information.

11. Use “Stop, Flop, or Know” for ALAP

For “As Late As Possible” decisions, make the judgment when you “Stop” gathering useful new information, face a “Flop” (first lost opportunity), or “Know” the right path due to unique insight. This prevents endless deliberation.

12. Visualize Your Deathbed Perspective

Engage in a thought experiment by visualizing your deathbed and what you want people to say about you. This allows you to turn future hindsight into current foresight, aligning your present choices with your desired legacy.

13. Audit Calendar for Priorities Alignment

Regularly audit your calendar and commitments to ensure they align with your stated priorities, reflecting where your time, energy, and focus truly go. This helps identify discrepancies between your declared values and actual actions.

14. Define the Problem Yourself

When you are responsible for a decision, take ownership of defining the problem yourself, rather than accepting a definition from others. This ensures accountability and that you are solving the correct issue.

15. Break Meetings for Problem Solving

Split problem-solving meetings into two separate sessions (e.g., 30 minutes each, 1-2 days apart). The first gathers input on the problem, and the second allows the decision-maker to define it and then brainstorm solutions, reducing blind spots.

16. Ask for Unique Insights in Meetings

In meetings, prompt participants with “What do you see about this problem that nobody else sees?” to elicit unique perspectives and uncover blind spots. This encourages deeper, more diverse contributions.

17. Push for Multiple Solutions

When exploring solutions, aim for more than just one or two options, as a deeper understanding of the problem often reveals three, four, or five viable paths. This encourages more thorough thinking and better outcomes.

18. Rank Decision Criteria (Battling Criteria)

Use the “battling criteria” method by writing each decision criterion on a sticky note and comparing them pairwise to rank them by importance. This clarifies priorities and helps weigh options effectively.

19. Be Mindful of HALT States

Be aware of “HALT” states (Hungry, Angry, Lonely, Tired) and avoid making important decisions when experiencing them. These states compromise clear thinking and can lead to poor choices.

20. Curate Your Mental Inputs

Be careful and curatorial about the information and influences you allow into your mind, as these become the raw material for your future thoughts. This prevents negative or unhelpful content from shaping your perspective.

21. Read Widely to Prevent Mistakes

Read widely to learn from others’ experiences and insights, which allows you to prevent problems and avoid mistakes. This practice helps master “the best of what other people have figured out.”

22. Volunteer for Foresight

Volunteer in retirement or assisted living communities to talk with residents. Their life experiences and regrets can offer valuable “hindsight as foresight” for your own decisions.

23. Use Visual Reminders

Place physical reminders, like a sticky note with a key phrase (“outcome over ego”), in your environment to prompt desired mindset shifts or behaviors. This serves as a constant, non-negotiable cue.